SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 11, 1997
MEDCATH INCORPORATED
(Exact name of registrant
as specified in its charter)
North Carolina 0-25176 56-1635096
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7621 Little Avenue, Suite 106, Charlotte, North Carolina 28226
(Address of principal executive offices)
Registrant's telephone number, including area code (704) 541-3228
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Item 5. Other Events
On February 11, 1997 MedCath Incorporated announced record results for January
1997 at the McAllen Heart Hospital. Results for the month included record net
revenue of $3.8 million and an average daily census of 54. In addition, the
Hospital signed three agreements with Preferred Provider Organizations (PPO's).
These are the first managed care contracts signed by the hospital.
Exhibits:
99.1 - Press Release dated February 11, 1997
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MEDCATH INCORPORATED
Date: February 26, 1997 By: /s/ Richard J. Post
---------------------------
Richard J. Post
Chief Financial Officer,
Secretary and Treasurer
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Exhibit 99.1
McALLEN HEART HOSPITAL EXPERIENCES RECORD
MONTHLY OPERATING RESULTS
ALSO SIGNS FIRST MANAGED CARE CONTRACTS
January Highlights:
Record $3.8 million in net revenue, $1.0 million in EBITDA, $302,000 in
pre-tax income
Average daily census for January was 54
Signed agreements with PPOs for 30,000 covered lives
Charlotte, North Carolina (February 11 , 1997) -- MedCath Incorporated
(Nasdaq/NM:MCTH) today announced record results for January for McAllen Heart
Hospital, McAllen, Texas, the Company's first heart hospital.
For the month ended January 31, 1997, McAllen Heart Hospital achieved a
record $3.8 million in net revenue, $1.0 million in EBITDA, and $302,000 in
pre-tax income. Average daily census for January was 54, compared with average
daily census of 40 for the first quarter ended December 31, 1996. In addition,
the Hospital signed three agreements with Preferred Provider Organizations
(PPOs) which cover 30,000 lives. These agreements are the first managed care
contracts signed by the hospital.
Stephen R. Puckett, president of MedCath said, "We are very pleased
with the progress McAllen Heart Hospital is making. The average daily census of
54 and the record net revenue for the month confirms our faith in MedCath's
heart hospital concept. We are particularly pleased with the signing of these
three managed care contracts which we believe represent the first of many such
affiliations with managed care providers. The release of this information
relating to McAllen Heart Hospital enables the Company to discuss the hospital's
recent financial performance with existing physician partners and prospective
physician investors."
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Statements contained in this press release which are not historical
facts may be considered forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from those projected. Such risks and uncertainties
include construction and development risks associated with heart hospitals;
operating losses and negative cash flows during the initial operation of heart
hospitals; dependence on physician relationships; dependence on long-term
management contracts; fluctuations in quarterly operating results from
seasonality, population shifts, third-party payor mix, patient volumes,
operating costs and other factors; dependence on key management; as well as
other risks detailed in the Company's filings with the Securities and Exchange
Commission.
MedCath Incorporated is a provider of cardiology and cardiovascular
services through the operation of specialized facilities and the management of
physician practices. The Company operates one specialty heart hospital and has
five additional heart hospitals under development, manages three medical
practices comprised of a total of 76 physicians, manages fixed-site cardiac
diagnostic and therapeutic centers, and owns and operates mobile cardiac
catheterization laboratories serving networks of hospitals.
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